The dollar is set to cap the week on a strong note today as it was perched near a two-year high bolstered by a hawkish U.S. rate outlook, while the yen struggled to stay afloat as it again weakened to a new low. Currencies took a breather after huge moves in the previous session sparked by a broad rally in the greenback. That drove its peers to milestone lows with the South Korean won sinking to a 15-year trough, the Canadian dollar tumbling to its weakest in more than four years and the Australian and New Zealand dollars hitting two-year lows. Central banks from Brazil to Indonesia also scrambled to defend their struggling currencies yesterday. Moves in the early Asian session today were more subdued, though that did not stop the yen from weakening to a five-month low of 157.93 per dollar, as it continues to remain under pressure from the Bank of Japan\'s (BOJ) reluctance to further raise rates. The BOJ kept interest rates unchanged yesterday and its governor stayed vague on how soon it could push up borrowing costs, just a day after the Federal Reserve pointed to fewer U.S. rate cuts next year. In other major currencies today, the euro last bought $1.03635 and was eyeing a weekly drop of 1.3% on the back of the dollar\'s strength. The sterling also slipped to a one-month low of $1.2490 early in the session. The dollar index last up 0.02% at 108.45.
Available to subscribers only!
